TORONTO, May 15 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. today announced a 40% increase in sales by its core business, Microbix Virology, during the second quarter of fiscal 2006 compared to the same year-earlier period.
Overall revenue declined 18% in the latest quarter as a result of lower contract development and technology-licensing fees. The relative weakness of the U.S. dollar also had a negative impact since most of the Company's revenue is denominated in U.S. currency.
A net loss of $276,901 was recorded in the quarter, compared to a profit of $132,230 last year. Much of the loss was attributed to increased costs associated with the start-up of operations at Microbix' new urokinase facility, accelerated development of its Sperm Separation Technology (SST), and a non-cash charge related to the issuance of stock options during the period.
Quarter Ended Mar. 31 Year To Date 2006 2005 2006 2005 ------------------------------------------------------------------------- Revenue $ 853,345 $ 1,036,961 $ 1,990,154 $ 2,229,665 ------------------------------------------------------------------------- Net Profit (loss) $ (276,901) $ 132,230 $ (382,953) $ 177,152 ------------------------------------------------------------------------- Net Profit (loss) Per Share $ (0.01) $ 0.00 $ (0.01) $ 0.00 ------------------------------------------------------------------------- Cash flow $ 297,251 $ 224,680 $ 304,370 $ 305,084
Microbix moved into its state-of-the-art urokinase facility in Toronto on January 31 this year, and during the quarter was successful in concluding an agreement with Angiogen LLC whereby the two companies will collaborate in licensing urokinase used in chemical drug combinations (drug cocktails) for specific cancer treatments.
"Having control of this facility is a significant step forward for Microbix," said President and CEO William J. Gastle. "The plant moves us up the 'food chain' and allows us to deliver added value to our partners." Also during the quarter, Microbix secured a $1-million financing agreement to operate the plant.
Another key development during the three months ended March 31, 2006, was the announcement of interim results from an independent study confirming that the Company's proprietary Influenza Vaccine Technology delivers a significant increase in the yield of human influenza virus used in the manufacture of flu vaccine. Final results are expected in the near future, and the Company has also begun work on evaluating the application of this technology to avian flu virus.
Microbix' SST Technology is moving forward, and it is currently in licensing discussions with artificial insemination companies. Semen sales in the swine, dairy and beef cattle industries are an estimated U.S. $3 billion a year. Microbix expects to realize revenues from royalties on these sales, as well as from sales of the genetic and other materials related to sex- determination of semen.
Microbix specializes in developing proprietary biological technologies and commercializing them through global partners. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Established in 1988, Microbix is headquartered in Toronto.
This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including: the risk associated with SST such as failure to develop and commercialize, non-adoption in the artificial insemination industry, resistance to the royalty business model for commercialization and implementation; risks associated with operation and maintenance of the urokinase facility; risks associated with commercializing the Vaccine Technology; and risks associated with margins due to appreciation of the Canadian dollar, among others. These forward-looking statements represent the Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.
Microbix Biosystems Inc.CONTACT: visit www.microbix.com or contact William J. Gastle, Presidentand CEO, Microbix Biosystems Inc., (416) 234-1624 x 230